Trump's Aggressive Tariff Tactics Spark Global Trade Tensions

President Donald Trump has announced increased U.S. tariffs beginning August 1, targeting countries including Japan and South Korea. The move is part of an ongoing trade war affecting financial markets. Some countries received letters suggesting possible negotiations, while others face significant tariff hikes, intensifying global economic uncertainty.

In a bold escalation of his trade policy, President Donald Trump on Monday declared that significantly higher U.S. tariffs will be applied starting August 1. The move affects major trade partners like Japan and South Korea, along with several smaller exporting nations such as Serbia, Thailand, and Tunisia.

The letters sent to 14 countries hinted at potential negotiation opportunities but carried a stark warning: any retaliatory measures will be met in kind. Trump's announcement has come as a surprise, with increased tariffs for nations including Tunisia, Malaysia, and others, destabilizing financial markets and casting a cloud of uncertainty over international trade relations.

While U.S. stock markets experienced a downturn, key automotive companies' shares plummeted, illustrating the ripple effect of these sweeping tariff measures. This aggressive stance comes amid ongoing discussions, with only a few agreements achieved so far, keeping much of the world on edge.

(With inputs from agencies.)